Adding green energy to the grid: Philips, HEINEKEN, Nouryon and Signify form first Pan-European consortium for future wind farm

December 11, 2020

• Consortium supports the development of additional 126 Megawatt capacity at wind farm in Finland
• Driving incremental production of renewable electricity in Europe, the deal is expected to add 330 Gigawatt hours of clean power to the electricity grid
• Netherlands-headquartered HEINEKEN, Nouryon, Philips and Signify committed to contracting renewable electricity from the wind farm for the first 10 years through a virtual Power Purchase Agreement (virtual PPA)

Amsterdam, the Netherlands – Royal Philips, HEINEKEN, Nouryon and Signify have formed the first consortium to sign a Pan-European green energy deal securing additional renewable electricity for Europe. The four companies have a shared vision to further reduce CO₂ emissions in support of the UN Paris Agreement and the European Green Deal objectives.

The companies joined forces to support the development of 35 wind turbines in the Mutkalampi municipality in Finland, which is scheduled for completion in 2023. The virtual PPA covers an expected output volume of 330 GWh per year – equivalent to the electricity consumption of 40,000 households. Compared to the average European electricity generation, this renewable electricity will help to avoid over 230,000 tons of CO₂ emissions per year.

The consortium has committed to contracting renewable electricity from the wind farm for the first 10 years through a virtual PPA. The electricity will be physically delivered to the Finnish grid while the four consortium partners benefit from the Guarantees of Origin. This provides income stability for the renewable project while guaranteeing clean energy benefits for the corporate buyers.

While the companies have signed PPAs for renewable electricity in the past, this is the first time such a consortium has formed a virtual PPA to drive incremental renewable electricity for Europe.

Through this consortium, HEINEKEN will source renewable electricity for an additional 31 of its European production sites [1], Nouryon will continue its progress in reducing CO₂ emissions by 25% by 2025, Philips secures renewable electricity supply to power its European operations for a 10-year period and Signify solidifies its leading position on 100% renewable electricity use and doubling the pace to reach the Paris Agreement over their value chain by 2025.

Jorge Paradela, Corporate Affairs Director Europe at HEINEKEN: “As part of our global CO₂ reduction program, Drop the C, we aim to significantly reduce emissions across our value chain and are committed to reaching 70% renewable energy in the production of our beers by 2030. This virtual PPA is another step towards our ambition and will provide the equivalent electricity needed to brew over 5 billion bottles of beer. Where possible, we aim to develop local PPAs for our Operating Companies. For example HEINEKEN Spain has signed a long term PPA involving the construction of a new solar photovoltaic plant. It is not always possible to build locally, therefore we are delighted to join forces on this virtual PPA to deliver significant renewable electricity for Europe. We firmly believe in the power of collaboration to help contribute to a greener world and greener future for us all.”

Marcel Galjee, Vice President Energy & New Business at Nouryon Industrial Chemicals: “As part of our commitment to a sustainable future, we have set a target to reduce carbon emissions by 25% between 2020 and 2025 and to increase our share of renewable and low-carbon energy to 60%. This virtual PPA combines the best of both worlds: additional renewable electricity is realized in Finland where there is space, both physically and on the grid, while we benefit from more sustainable energy for our operations.”

Robert Metzke, Global Head of Sustainability at Philips: “Climate change threatens our healthcare systems globally. This renewable electricity partnership raises the bar in how we can jointly increase green energy supply across Europe, in line with the UN Paris Agreement. With this agreement, we secure renewable electricity supply to power our global operations for a 10-year period, delivering real progress on our 2025 climate targets. By the end of this year, we will be carbon neutral in our own operations, and we aim to source over 75% of our total energy consumption from renewable sources by 2025.”

Nicola Kimm, Head of Sustainability, Environment, Health & Safety at Signify: “The world increasingly faces the challenges posed by climate change. The time to act is now. We already achieved carbon neutrality for all our global operations earlier this year and we source 100% renewable electricity. Now we are committing to double the pace we reach the Paris Agreement over our value chain by 2025. Joining forces to realize this Pan-European PPA will accelerate the transition to clean energy and supports our climate action ambitions. We hope to encourage others to follow so we can collectively reduce carbon emissions around the globe.”

The new wind farm will be realized by Neoen, an independent French producer of renewable energy. The four parties were advised on the consortium by Schneider Electric.

[1] Across 13 of its European Operating Companies in Romania, Portugal, Belgium, Bulgaria, Croatia, Czech Republic, Greece, Hungary, Ireland, Serbia, Slovakia, Slovenia and Switzerland.

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 81,000 employees with sales and services in more than 100 countries. News about Philips can be found at .

About Heineken

HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders. HEINEKEN is committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. It employs over 85,000 employees and operates breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: and follow us via @HEINEKENCorp.

About Nouryon

We are a global . Markets worldwide rely on our essential chemistry in the manufacture of everyday products, such as paper, plastics, building materials, food, pharmaceuticals, and personal care items. Building on our nearly 400-year history, the dedication of our 10,000 employees, and our shared commitment to , strong financial performance, safety, , and innovation, we have established a world-class business and built strong partnerships with our customers. We operate in over 80 countries around the world and our portfolio of industry-leading brands includes Eka, Dissolvine, Trigonox and Berol. Visit our and follow us and on .

About Signify

(Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our products, connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. With 2019 sales of EUR 6.2 billion, we have approximately 37,000 employees and are present in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We carbon neutrality in 2020, have in the Dow Jones Sustainability World Index since our IPO for four consecutive years and were named in , and . News from Signify is located at the , , and . Information for investors can be found on the page.

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